I’ve seen a lot of confusing recommendations thrown around recently concerning Proposition 126, the proposal that will prevent the legislature from taxing service businesses.
Here’s our take on Prop 126 — straightforward and uncomplicated.
Right now, neither the counties nor the state tax a wide variety of services — health care, pet care, accounting, legal representation, real estate services, and the like.
This list includes our three major offerings: Internet service, computer repair, and technical assistance and consulting.
Right now, you don’t pay tax on these. That makes your life less expensive, and it makes ours much less complicated. We’d like that to remain unchanged, and we hope you do as well.
If Proposition 126 fails and we are forced to collect tax on these services, our prices will not only have to reflect the new tax, but the administrative costs to us of collecting, remitting, and accounting for this new tax.
Proposition 126 is one of those confusing propositions where you have to vote yes to prevent a new tax. Please keep this in mind when you vote. Thank you.
As we mentioned in our last posting, states and localities are still pulling at the leash to add new telephone-style taxes into your internet service. The expected tax in Arizona would be about 12%.
The House has already approved renewal of the Permanent Internet Tax Freedom Act, but the law is in trouble in the Senate. Instead of voting the act up or down last Friday, as scheduled, our senators voted to kick the can a few feet down the road by approving a weak five-day extension of the original expiration date. That reprieve ends tomorrow (Wednesday).
If you haven’t yet instructed your Senator to renew the Permanent Internet Tax Freedom Act permanently, please do so today. It only takes a few clicks. Thank you.
…unless Congress votes to renew it, which is looking questionable.
The recent FCC reclassification of the Internet under so-called “net neutrality” regulations allows states and localities to levy new phone-style taxes onto internet service contracts, once the current federal prohibition against such taxes expires tomorrow. The expected tax in Arizona would be roughly 12%.
Please take a moment to visit this website, where with just a couple clicks you can instruct your federal legislators to vote to renew the Permanent Internet Tax Freedom Act.